Controversies between Keynesian,monetarist,supply-side,and eclectic theories focus on:
A) The shape and sensitivity of aggregate supply and aggregate demand curves.
B) The existence or nonexistence of the aggregate supply curve.
C) The importance of international balances to the economy.
D) The usefulness of aggregate demand and supply in analyzing macro equilibrium.

Question

Quizplus · Accepted Answer

The controversies between Keynesian, monetarist, supply-side, and eclectic theories primarily revolve around differences in their assumptions and predictions about the shape and sensitivity of aggregate supply and demand curves. These theories have varying views on the role of government intervention, the importance of monetary policy, and the effects of taxation on economic growth. However, they all generally agree on the usefulness of aggregate demand and supply analysis in understanding macroeconomic equilibrium.

Controversies Between Keynesian,monetarist,supply-Side,and Eclectic Theories Focus On